When the money market is drawn with the value of money on the vertical axis,the price level increases if
A)either money demand or money supply shifts right.
B)either money demand or money supply shifts left.
C)money demand shifts right or money supply shifts left.
D)money demand shifts left or money supply shifts right.

Question

Quizplus · Accepted Answer

The price level increases when money demand shifts left or money supply shifts right. This is because when money demand shifts left, people are demanding less money, which means that the value of money increases. When money supply shifts right, the government is printing more money, which means that the value of money decreases.

When the Money Market Is Drawn with the Value of Money